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Rent Or Lease With Option To Purchase .......... Lending Restrictions Fannie Mae

Yesterday I began this Rent Or Lease With Option To Purchase series, with a brief introduction.  Today I will provide the Fannie Mae Guidelines on the allowable amount a Landlord can contribution towards the downpayment. 
Fannie Mae Guideline 303.13 Rent Credit For Option To Purchase:  States that a rent credit for an option to purchase is an acceptable source of funds toward the minimal required Borrower downpayment.  This amount can be for the full amount of the minimum required Borrower downpayment, the Borrower does not have to use any of their own funds in order to be able to use rental payments towards their minimum required Borrower downpayment.  So far no problem, and appears to be in line with what would be expected. However, further reading of the guideline on how to calculate the amount of the Rent that is allowed by Fannie Mae toward the minimum required Borrower downpayment, paints a different picture.
The guideline goes on to say that the:
Credit for the downpayment is determined by calculating the difference between the market rent and the actual rent paid for the last 12 months. The market rent is determined by the appraiser in the appraisal for the subject property. The lender ... more

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